In October, AI startups raised $12.2 billion, accounting for approximately 38% of total global venture funding, marking the second-highest month in the sector's funding history, following May 2024's $12.8 billion. Notable contributions included a $6 billion Series B round for a generative AI startup associated with Elon Musk and OpenAI's $6.6 billion raise, elevating its post-money valuation to $157 billion. Excluding OpenAI, AI startups garnered over $6.6 billion, reflecting a rebound after combined funding of $8.7 billion in August and September. October's total significantly surpassed September's nearly $4.3 billion, despite a reduction in rounds, with 413 rounds in October compared to 522 in September. The rise in funding stemmed from large deals, as October recorded 11 transactions of $100 million or more, contrasting with 13 such deals in the preceding two months. Significant funding rounds included Poolside's $500 million raise, Lightmatter's $400 million raise, and Sierra's $175 million raise. The increase in investment indicates a temporary lull in funding rather than a downturn, reinforcing ongoing interest in the AI sector.

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